Bayer announced that Elanco Animal Health has entered into a definitive agreement to acquire Bayer’s Animal Health business. The transaction is valued at US$ 7.6 billion (EUR 6.85 billion), financed by 70 % cash and 30 % equity. The divestment is expected to be concluded in mid-2020 subject to the satisfaction of customary closing conditions, including antitrust clearance.
The transaction will double Elanco’s Companion Animal business and will augment its already strong R&D pipeline. Bayer’s exit of the Animal Health business marks the largest transaction in the series of portfolio measures initiated by Bayer in November 2018 after the Monsanto deal. The company had previously announced the divestiture of its Consumer Health brands Coppertone™ and Dr. Scholl’s™ along with the sale of its 60 % stake in German site services provider Currenta.
Bayer’s Animal Health business is a global leader in the segment with sales of 1.8 billion US$ in fiscal 2018. It develops and markets products and solutions to prevent and treat diseases in companion and farm animals. The Advantage™ family of flea, tick, and worm-control products, for instance, has been among the most successful products on the market for years. The Seresto™ collar is one of the fastest-growing products in this area, according to Bayer.
Under the agreement, all Bayer Animal Health employees, approx. 3.700 (about 3 % of of the total workforce) will have at least one year of employment protection against unilateral termination with similar and no less favorable benefits in the aggregate.